Tax Information for Postdoctoral Fellows/Trainees
A Postdoctoral Fellow/Trainee is not an employee and your stipend is not considered to be wages under federal and state tax law. As a result, you are not subject to social security or Medicare tax. However, the total amount of your fellowship is fully taxable for both federal and state income.
U.S. Citizens: If you are a United States citizen, the University will not withhold any federal or state income taxes. You may need to file estimated taxes with the Internal Revenue Service (IRS) and the Wisconsin Department of Revenue (DOR). See IRS Publication 520, Scholarships and Fellowships and IRS Publication 505, Tax Withholding and Estimated Tax, available at http://www.irs.gov/ and DOR Publication 112 Wisconsin Estimated Tax http://www.dor.state.wi.us/ for more information.
Resident Aliens: If you are a resident alien, the University will not withhold any federal or state income taxes. You may need to file estimated taxes with the Internal Revenue Service (IRS) and the Wisconsin Department of Revenue (DOR), unless there is a tax treaty between your country of permanent residence and the United States that excludes all or a portion of your income from being taxable. See IRS Publication 520, Scholarships and Fellowships and IRS Publication 505, Tax Withholding and Estimated Tax, available at http://www.irs.gov/ and DOR Publication 112 Wisconsin Estimated Tax http://www.dor.state.wi.us/ for more information. You must complete the Alien Tax Information Request Form (UW1123), which is available in our International Tax Packet (UW1469), which is available at http://www.bussvc.wisc.edu/ecbs/itx-international-tax-packet-uw1469.pdf.
To find out if there is a tax treaty available, please see the International Tax Packet (UW1469), which is available at http://www.bussvc.wisc.edu/ecbs/itx-international-tax-packet-uw1469.pdf for Internal Revenue Service Publication 901, U.S. Tax Treaties, which is available at http://www.irs.gov/. If you are resident alien and eligible for tax treaty benefits you must also complete a form W-9, Request for Taxpayer Identification Number and Certification to receive the benefits through our payroll system and the form is also in the International Tax Packet (UW1469).
Nonresident Aliens: The university is required to withhold federal income tax from your income at the rate of 14%, unless there is a tax treaty between your country of permanent residence and the United States that excludes all or a portion of your income from the federal and Wisconsin state income tax withholding.
To find out if there is a tax treaty available, please see the International Tax Packet (UW1469), which is available at http://www.bussvc.wisc.edu/ecbs/itx-international-tax-packet-uw1469.pdf for Internal Revenue Service Publication 901, U.S. Tax Treaties, which is available at http://www.irs.gov/.
All Nonresident Aliens must complete the Alien Tax Information Request Form (UW1123) within the International Tax Packet (UW1469) and return it to the University of Wisconsin-Madison, Department of Employee Compensation and Benefits Services at 750 University Avenue, Room 49, Madison, WI 53706-1490. In order to be eligible for tax treaty benefits, you must also complete an Internal Revenue Service Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding.
For additional information or questions, please contact the University of Wisconsin-Madison, Department of Employee Compensation and Benefits Services at 608-262-5650 or 608-263-7556 or email at employee@bussvc.wisc.edu or visit their website at http://www.bussvc.wisc.edu/ecbs/ecbs.html. You can also call IRS within the U.S. for general assistance at 1-800-829-1040 (toll free), within the U.S. For tax treaty questions call 215-516-2000. To order IRS forms and publications, call 1-800-829-3676 (toll free), within the U.S or visit their website at http://www.irs.gov/. To contact the Wisconsin Department of Revenue for assistance you can call 608-266-2486 or 608-266-2772. For Wisconsin Department of Revenue forms and publications, call 608-266-1961 or visit their website at http://www.dor.state.wi.us/.